Demystifying NetEase's strict selection of factories: How to achieve "good life is not so expensive?

The enthusiasm caused by the first carefully selected hotel opened with Adora has not yet passed. The recently selected “HOME” has become the focus of the industry. The “good life, not so expensive” Netease is more and more selected by the outside world. s concern. On the eve of the Double 11, a group of media delegations entered the shirt manufacturer and Esquel Group (hereinafter referred to as “Yida”), which was carefully selected by Netease. How does Netease select and screen the manufacturers, how to ensure high cost performance and strict guarantee The impact of product quality and strict selection on China's manufacturing industry – all of which are answered with the secrets of the factory.

Fully automated production, 9 garments per second

Due to the special nature of garment fabrics, as well as research and development investment and labor costs, large-scale automated production is still rare in domestic garment factories.

But in the production workshop of Esquel, the advanced equipment introduced and improved by Esquel can be seen everywhere. One of the clothes cars runs rhythmically, and the garment workers no longer use them. Just press the “sewing” button. The machine will be automatically sewed according to the wire molds independently developed by Esquel. Then, the clothes will be automatically transported to the next process along the intelligent transportation equipment arranged in the workshop, and the unique barcode of each garment will make the information of each handle of each garment, the current process, etc. Can be intelligently identified by the internal transportation chain of the workshop, and ultimately achieve traceability to the production process and finished product quality of each product, so as to better ensure quality.

But in the production workshop of Esquel, the advanced equipment introduced and improved by Esquel can be seen everywhere. One of the clothes cars runs rhythmically, and the garment workers no longer use them. Just press the “sewing” button. The machine will be automatically sewed according to the wire molds independently developed by Esquel. Then, the clothes will be automatically transported to the next process along the intelligent transportation equipment arranged in the workshop, and the unique barcode of each garment will make the information of each handle of each garment, the current process, etc. Can be intelligently identified by the internal transportation chain of the workshop, and ultimately achieve traceability to the production process and finished product quality of each product, so as to better ensure quality.

Today, the automation rate of Esquel's woven garments is 65%, and the knitting department's automation rate is 35%, which is the highest level in the industry. Thanks to the continuous improvement of workers' technical capabilities and the popularization of automated production, Esquel's automated garment manufacturing efficiency (average value) has increased by about 3 times compared with the traditional garment manufacturing process; the use of automated garment technology allows The employee training cycle has been reduced by 93% and the product pass rate has increased to over 90%. In 2016, Esquel produced more than 110 million high-quality shirts, equivalent to more than 9 shirts per second.

Today, the automation rate of Esquel's woven garments is 65%, and the knitting department's automation rate is 35%, which is the highest level in the industry. Thanks to the continuous improvement of workers' technical capabilities and the popularization of automated production, Esquel's automated garment manufacturing efficiency (average value) has increased by about 3 times compared with the traditional garment manufacturing process; the use of automated garment technology allows The employee training cycle has been reduced by 93% and the product pass rate has increased to over 90%. In 2016, Esquel produced more than 110 million high-quality shirts, equivalent to more than 9 shirts per second.

Strictly assess quality and environmental protection, hand in hand with excellent manufacturers

Today, this garment manufacturer with an annual turnover of 1.3 billion US dollars is facing a new round of industrial upgrading due to the ever-changing market changes and the advent of the new era of e-commerce.

“In fact, as early as 2013, there was a well-known domestic e-commerce platform to contact Esquel, and I hope that Esquel can supply shirts for its own clothing brands. However, due to the limitations of the conditions at the time, no cooperation was finally reached. In 2016, the development of domestic e-commerce showed a qualitative change from quantitative change to 'quality and service'. Esquel began to seriously consider cooperation with e-commerce websites.” Eslite's online sales manager said.

Under the general trend of consumption upgrading, how to choose the best development path and cater to consumers' pursuit of quality has become the biggest challenge for e-commerce in the future development.

Netease's strict selection of marketing department head Chen Jie said that NetEase's strict selection will determine the most advanced factory of the category when it is determined to be a category. This is a requirement for the hard strength of the factory. Subsequently, the Netease supply chain and quality inspection department will first conduct the inspection. The dimensions of the inspection include the basic conditions of the factory, technical patents, new product development capabilities, production process management and control capabilities, quality management capabilities, etc. Finally, a factory assessment score will be given. To determine whether the factory meets the hard criteria of strict selection.

In the factories that meet the above criteria, NetEase will select the factories that match the specifications of Netease according to the category and product style of the products produced by the factory. For example, Netease strictly selects shirts to be selected, and there are several factories that meet the standards of Netease's strict selection. However, the products and product styles produced by Esquel are in line with the style of NetEase.

At the same time, environmental performance is also one of the important indicators of Netease's strict selection of factories. In the textile industry, many companies have to make changes due to environmental pressures. Esquel has taken the initiative to impose strict requirements on environmental protection more than a decade ago. In the more than ten years from 2005 to 2016, The unit energy consumption of the products is reduced by 45%, and the unit water consumption reduction is as high as 64%.

Netease's strict pursuit of product quality and understanding, and the rigorous assessment of the partners' environmental performance are in line with Esquel's philosophy. In addition, Esquel's transformation and upgrading now have intrinsic demand for in-depth development of e-commerce cooperation. This has become a major prerequisite for smooth cooperation between the two sides.

Intervene in the source of production, control the whole process

At present, NetEase has selected 22 shirts for the selection of shirts. Most of the shirt products are supplied by Esquel, and Netease strictly selects them from the selection, design and production. According to Chen Jie, during the consumption upgrade process, users have different upgrades to the fabric requirements, comfort requirements and appearance requirements of the shirts. Netease carefully selected the design team to complete the products according to the analysis of big data and the Esquel team. The final design is finalized so that user needs can be maximized in the final sale.

This new "e-commerce + high-end manufacturing" model is both a challenge and an opportunity for the development of e-commerce and manufacturers.

This new "e-commerce + high-end manufacturing" model is both a challenge and an opportunity for the development of e-commerce and manufacturers.

Most of the e-commerce platforms on the market today are only used as a sales channel. Quality, customer service, return and supply chain efficiency are all completed by the merchants on the platform, and many links are difficult to control. Some products adopt a self-operated plus platform model, and similar problems will exist, that is, the product quality and service monitoring of the merchants on the platform are weak.

However, as the brand's NetEase is carefully selected, the whole process from the supply chain to the sales front end is closed-loop, and management and operation will be carried out by itself, and the effect and quality control will be better. "Because of the involvement in raw materials, production, logistics, after-sales and other aspects, Netease can strictly select the cost management in each link, strictly control the cost of goods, and implement a low markup rate, and ultimately provide consumers with low-cost good things. Chen Jie said.

The head of Esquel's online sales also said that it is good to see that domestic e-commerce companies can cooperate with suppliers so deeply. E-commerce orders are characterized by fast data feedback and urgent order requirements, which are not so well matched to traditional supply chain production habits. In order to adapt to the rapid changes in demand from e-commerce, Esquel's mature and advanced vertical integrated supply chain has played a significant role, which enables Esquel to quickly and proactively adjust internal production arrangements. At the same time, the strict selection model from the very beginning Develop and produce products together with the factory, so that manufacturers can instantly understand the market dynamics and better allocate production resources. “In the future, we hope to be able to open the data and realize the flexible supply chain production of e-commerce brands.”

In addition, like many domestic manufacturers, Esquel also has its own clothing brand and developed its own e-commerce channel. The person in charge of online sales of Esquel said that he hopes to cooperate with Netease to get closer to consumers and jointly develop the e-commerce market.

In the past 30 years of development in China, a large number of manufacturers with high-quality production capacity have emerged. At present, there are hundreds of Netease-selected cooperative factories like Esquel, which are mainly distributed in coastal areas with relatively developed manufacturing industries. Among them, Zhejiang and Guangdong factories account for more than half of the total, and some overseas suppliers are providing goods for strict selection.

The person in charge of the selection of Netease said that it hopes that through efforts, consumers will be more exposed to and recognize the high-quality goods manufactured in China, and as far as possible in the supply chain, they will support domestic excellent manufacturers like Esquel and promote domestic manufacturing. The development of a virtuous circle is setting a new benchmark for manufacturing in China for the manufacturing industry in China, and hopes to promote a batch of China's future manufacturing industry through strict selection.

(Editor: HN666)

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